Elliott Wave 5.0 "Reboot"

Wednesday, July 27, 2016

Crude Oil Bull Market Review



I will occasionally post something on this blog,  but only some bigger wave counts. I am sure you have heard all the bearish ranting going on, regarding the oil's summer decline. We were expecting it, and now we have to find a bottom that will hold. Any wave 2 will do that, but a wild guess at a support price level will not.

Diagonal waves don't have your normal impulse retracements, as a short free fall can turn quickly and soar the other way.   When the mainstream media is this bearish this early, then a rally  or a complete reversal should still be in the cards. Short term we can still have some downside left, but longer term I expect WTI crude oil to double or even triple from todays price levels. 

Not until we get close to a gold/oil ratio below 17:1 will we get close to a major top. In the last few days the gold/oil ratio has been around 29:1